Lower
interest rates dont always mean that homeowners should upgrade to
bigger and better properties. If they have built up substantial equity
in their homes, it may be time to access some of it and make alternations
or improvements instead.

That way, many believe, they can have a bigger and better home without
having to go to the trouble and expense of moving.

However, says Martin Schultheiss, CEO of Harcourts Africa, homeowners
should seek expert advice about home values and growth prospects in their
area before making a final renovate or relocate decision.

You need to be very careful not to overcapitalise. Prices in many
areas are still at a low ebb following the recession, which might make
it difficult to recoup your renovation expenditure if you suddenly had
to change your plans and sell.

And in any case most neighbourhoods will only support prices up
to a certain level. After that, potential buyers with more money will
be most likely be looking at a more expensive area, so if your home is
already at the upper end of the price range for its area, you should probably
move rather than spend any more on it.

Schultheiss says homeowners also need to make sure that any changes they
plan will comply with municipal regulations, that additions will match
the style and décor of the original building and that any alterations
make sense.

You dont want to end up with a four or five bedrooms and
just one bathroom, for example, or spacious new reception rooms contrasting
with a cramped, outdated kitchen.

And lastly, he says, you must take into account the inconvenience and
discomfort of living in a home while renovating it. It is really
only worth putting up with this if you plan to stay on in your home long
enough after the work is finished to enjoy the improvements youve
made.